The Telecoms Sector in Mozambique Going with the flow Research November 2014 A fast growing country Mozambique has amongst the weakest telecommunications indicators in Sub Saharan Telecommunications Africa, having less than one fixed telephone per 100 inhabitants and a relatively low Guido Varatojo dos Santos mobile penetration rate. These indicators are mostly explained by a long civil war and (+351) 211 214 468 reflect the country’s GDP per capita of US$ 593 in 2013, making Mozambique one of
[email protected] the poorest countries in the region. However, recent mineral resource discoveries should make Mozambique one of the largest LNG and coal exporters before the end of the decade. These discoveries have created a very favorable economic outlook for Mozambique, with the country’s GDP growth expected to surpass 8% this year and average 7.8% in 2015-2019F (source: IMF). And growing telecommunications Despite the poor indicators regarding telecommunications, economic development should fuel the sector’s growth during the next few years. Notwithstanding the competitive environment in the mobile sector that has driven prices down in the last couple of years, telecommunication costs remain relatively high for the majority of the population. However, economic growth should provide additional purchasing power to the population, increasing the number of telecommunications subscribers and allowing actual subscribers to spend more money in telecommunications services. Moreover, the sector is crucial for the country socioeconomic development and should be one of the authorities’ priorities. New telecommunications law yet to be approved The country’s basic telecommunication law dates back to 2004 and needs to be updated urgently.